In recent months, it was noted that the spending habits of American consumers were weaker than anticipated. However, it appears that they are now steadily returning to the shopping aisles, albeit in a more selective fashion.
The retail environment has always been fiercely competitive, mirroring the ‘survival of the fittest’ law of the jungle. It has become significantly more evident lately, as the field is clearly divided between winners and losers.
To better grasp this situation, let’s turn our attention to the stock market. Several big players have seen incredible growth throughout the year, including Amazon (AMZN, Tech30) with a whopping 83% increase, Under Armour (UA) with a solid 47% climb, and toy manufacturer Hasbro (HAS) gaining a healthy 41%.
However, the retail sector also harbors some of the most underperforming stocks. These unfortunate contenders include Michael Kors (KORS) witnessing a steep decline by 46%, Gap (GPS) dropping by 37%, and Ralph Lauren (RL), also down by 37%. The latter’s performance has been so regrettable that it has replaced its founder with a new CEO to turn the tide. For more insights, head over to CNN MONEY.
Photo credit: jarmoluk
